P company purchased a 70% interest in S company on January 1, 2015 for $2,000,000. The book value and fair value of the assets and liabilities of S company on that day were:

                                                BOOK VALUE                     FAIR VALUE

Current assets                   $700,000                              700,000

Equipment                         1,600,000                             2,000,000

Land                                      500,000                                 700,000

Deferred charge               400,000                                 400,000

Total Assets                       3,200,000                             3,800,000

Less: Liabilities                 (700,000)                             (700,000)

Net Assets:                         2,500,000                             3,100,000

The equipment had a remaining useful life of 8 years on January 1, 2015 and the deferred charge was being amortized over a period of 10 years from that date. C/S was $1,700,000 and Retained Earnings was $110,000 on that same date. P company uses partial-equity method to record its investment within S company.

Create the December 31, 2015 work paper entries that:

1. Eliminate the investment account
2. Allocate and amortize the difference between implied value and book value

1. A corporation has 71,376 shares of $24 par stock outstanding that has a current market value of $312 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

a.$17,844

b.$288

c.$78

d.$6

2. On January 1 of the current year, the Barton Corporation issued 9% bonds with a face value of $98,000. The bonds are sold for $95,060. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is

a.$2,940

b.$735

c.$9,408

d.$8,820

3. A company with working capital of $840,000 and a current ratio of 4 pays a $135,000 short-term liability. The amount of working capital immediately after payment is

a.$840,000

b.$705,000

c.$135,000

d.$975,000

4. A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

a.$19,200

b.$32,000

c.$12,800

d.$48,800

5. The balance sheets at the end of each of the first two years of operations indicate the following:

Using the balance sheets for Kellman Company, if net income is $119,551 and interest expense is $31,114 for Year 2, and the market price of common shares is $34, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)?

a.1.96

b.10.69

c.10.21

d.17.35

Agatha Agate Inc. began business on January 1, 2013. At December 31, 2013, it had a $6,000
balance in the deferred tax liability account related to property, plant and equipment. The
equipment, purchased in 2013, cost $1,200,000. Agatha is depreciating the equipment on a
straight-line basis over six years for financial reporting purposes. The equipment is a Class 8 -20%
asset for tax purposes. In 2013 Agatha reported depreciation expense of $100,000 and calculated
CCA as $120,000. [Note: Agatha took 50% in the year of acquisition. Both depreciation and CCA will
be calculated at the full rates in 2014]. Agatha’s before tax income in 2014 was $80,000. Agatha
follows IFRS. Information about income includes the following:
a. Total rent paid in 2014 was $75,000 of which $25,000 was expensed in 2014. The remaining $50,000
represents prepaid rent, which will be expensed equally in 2015 and 2016. The full $75,000 was
deducted for tax purposes in 2014.
b. Agatha Agate Inc. pays $12,000 per year for a membership in a local golf club for the company’s
president.
c. The company now offers a one-year warranty on all merchandise sold. Warranty expenses for 2014 were
$12,000. Cash payments for warranty expense were $6,000 in 2014.

d. Meals and entertainment expenses (only 50% of which are ever deductible for tax purposes) were
$16,000 in 2014.
e. The current tax rate is 30% and the rate has not changed since Agatha began business.
Required: [16 marks]
i. Calculate the balance in the Deferred Tax Asset or Liability account at December 31, 2014 [4 marks]
ii. Calculate income tax payable for 2014 [5 marks]
iii. Prepare the journal entries to record income taxes for 2014 [2 marks]
iv. Prepare the income tax expense section of the income statement for 2014, beginning with Income before
income tax [3 marks]
v. Prepare the liability section of the Statement of Financial Position at December 31, 2014 for deferred
income taxes. [2 marks]

Discuss different steps and approaches involved in estimating time? Please explain in brief the different steps involved in the Critical Path Model as part of Project Scheduling.

Please give answer in more than 400 words and prefer to paste from word or excel or type as plain text.

Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2018, the balance in the Investment in Lindman account is $419,000. Amortization associated with this acquisition is $15,600 per year. In 2018, Lindman earns an income of $135,000 and declares cash dividends of $45,000. Previously, in 2017, Lindman had sold inventory costing $30,400 to Matthew for $38,000. Matthew consumed all but 25 percent of this merchandise during 2017 and used the rest during 2018. Lindman sold additional inventory costing $41,800 to Matthew for $55,000 in 2018. Matthew did not consume 40 percent of these 2018 purchases from Lindman until 2019.

1. What amount of equity method income would Matthew recognize in 2018 from its ownership interest in Lindman?

2. What is the equity method balance in the Investment in Lindman account at the end of 2018?

Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $245,090. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7: Year 1 $389,800 2 399,800 3 410,200 4 425,400 5 432,400 6 435,000 7 436,000 The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected to be $380,800. This new equipment would require maintenance costs of $99,000 at the end of the fifth year. The cost of capital is 9%. Click here to view PV table. Use the net present value method to determine the following: (If net present value is negative then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value. Net present value $ Determine whether Hillsong should purchase the new machine to replace the existing machine?

Financial Analysis questions:

Industry: Automotive

1. If the inventory turnover ratio, net income to employees, and revenue to employees ratio are below the industry average what does it tell? is it bad or good?

2. If the asset turnover ratio and receivable turnover ratio are above the industry average is it good or bad and what does it tell?

3. If your ROA, ROE, ROI, Gross Margin, operating margin, net profit margin, and EBITDA margin are above/below the industry average, what does it tell? Good or bad?

4. what are some growth analysis ratios? And if they above/below the industry average, what does it tell? Good or bad?

The account balances from the December 31, 2019, trial balance for Haman Accounting Services are shown below.

1. Prepare an income statement for the Haman Accounting Services for the month ended December 31, 2019.
2. Prepare a statement of owner’s equity for Haman Accounting Services for the month ended December 31, 2019.
3. Prepare a balance sheet for Haman Accounting Services as of December 31, 2019.

Complete this question by entering your answers in the tabs below.

• Income Statement
• Owners Equity
• Balance Sheet

Prepare a statement of owner’s equity for Haman Accounting Services for the month ended December 31, 2019. (Input all amounts as positive values.)

• Income Statement
• Owners Equity
• Balance Sheet

Prepare an income statement for the Haman Accounting Services for the month ended December 31, 2019. (Input all amounts as positive values.)

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Break-Even Sales Under Present and Proposed Conditions

Darby Company, operating at full capacity, sold 156,100 units at a price of $108 per unit during the current year. Its income statement is as follows:

The division of costs between variable and fixed is as follows:

Management is considering a plant expansion program for the following year that will permit an increase of $1,296,000 in yearly sales. The expansion will increase fixed costs by $172,800, but will not affect the relationship between sales and variable costs.

Required:

1. Determine the total variable costs and the total fixed costs for the current year.

2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.

3. Compute the break-even sales (units) for the current year.
units

4. Compute the break-even sales (units) under the proposed program for the following year.
units

5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $6,094,800 of income from operations that was earned in the current year.
units

6. Determine the maximum income from operations possible with the expanded plant.
$

7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
$

8. Based on the data given, would you recommend accepting the proposal?

1. In favor of the proposal because of the reduction in break-even point.
2. In favor of the proposal because of the possibility of increasing income from operations.
3. In favor of the proposal because of the increase in break-even point.
4. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
5. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.

Choose the correct answer.

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Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories:

Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows:

Total Cost Method of Product Pricing

Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 6,500 units of cell phones are as follows:

Smart Stream desires a profit equal to a 15% return on invested assets of $702,520.

a. Determine the total cost and the total cost amount per unit for the production and sale of 6,500 units of cellular phones. Round the cost per unit to two decimal places.

b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones.
??? %

c. Determine the selling price of cellular phones. Round to the nearest cent.
$ ??? per cellular phone

1.Assume that you are the president of your company and paid a year-end bonus according to the amount of net income earned during the year. When prices are rising, would you choose a FIFO or weighted average cost flow assumption? Explain, using an example to support your answer. Would your choice be the same if prices were falling?

2. Compare and contrast the direct write-off method and the allowance method for bad debts. At a minimum, please consider the following in your answer:

• When is the expense for uncollected accounts receivable recognized under each method?
• Why is the direct write-off method not considered to follow generally accepted accounting.

3.Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during the period purchased? Choose one of the following depreciation methods to discuss: straight line, units of production, declining balance. Share how depreciation using this method is calculated and provide an example of when this would be the most ideal method for application.

4.What distinguishes a current liability from a long-term liability? Why is it so important to report these separately? How is this information used in decision making applications?

5.Define coupon and market/effective interest rates as they determine bond pricing at par, premium, or discount values.

Labor Variances Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has set the following standards for materials and labor: Leather (3 strips @ $4) $12.00 Direct labor (0.75 hr. @ $12) 9.00 Total prime cost $21.00 During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 287,500 strips at $3.90 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 78,600 hours at $12.50 per hour.

Required: 1. Break down the total variance for labor into a rate variance and an efficiency variance using the columnar and formula approaches.

Rate variance $ 39,300

Unfavorable Efficiency variance $ 46,000 Unfavorable ??????

Total variance $ -276,900 Unfavorable ????

2. CONCEPTUAL CONNECTION As part of the investigation of the unfavorable variances, the plant manager interviews the production manager. The production manager complains strongly about the quality of the leather strips. He indicates that the strips are of lower quality than usual and that workers have to be more careful to avoid a belt with cracks and more time is required. Also, even with extra care, many belts have to be discarded and new ones produced to replace the rejects. This replacement work has also produced some overtime demands. What corrective action should the plant manager take? Return to suppliers that provide the quality corresponding to the price standard. Employ more skilled labor at a cost lesser than the savings made by buying cheap material and improve the product quality. There is no need to change anything. The sales are not affected by this low quality of raw material.

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